Indiareit Fund Advisors, the real estate private equity arm of Piramal Enterprises, has exited investments worth Rs 440 crore from three of its earlier funds and one from a third party mandate.and expects to raise another $120 million through more exits in the near future.
India's property market has been tough for global private equity funds, whose investments have been stuck due to low valuations. Initially, the players were captivated by its growth potential, as developers had promised double-digit returns but failed to deliver.
Many of the India-focused private equity funds are trying to exit investments made during 2006-07 as the life of the fund nears its end. They are also exploiting a recent rebound in investment sentiment towards the country.
The three exits include a phased stake sale of an SEZ within a township project located at Hinjewadi, Pune, being developed by Paranjape Schemes, another residential project in Pune and a premium luxury project in Mumbai.
The fund has already returned about Rs 905 crore to investors from previous exits in earlier vintage funds and third-party mandates, Indiareit said.
International private equity firms, mainly from the United States and Europe, have invested $13 billion in the Indian real estate sector since 2005 and are expected to exit from up to $5 billion worth of investments over the next couple of years, according to property consultancy Jones Lang LaSalle.
"The sentiment has changed. We are trying to do some more exits in the next couple of months," Khusru Jijina, managing partner of Indiareit Fund Advisors, said in a statement.
Win inputs from Agencies